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Nonprofit organizations can play a critical role in narrowing the income gap.

Author: Neal Waugh

Directors of nonprofit organizations have a tremendous opportunity to make a positive impact on their families and the broader community. Giving to nonprofit organizations (NGOs) in 2021 was $484.85 billion, reflecting a 4% increase from 2020 (National Philanthropic Trust, 2018).

Individuals gave $326.87 billion to nonprofit organizations in 2021, representing 67% of total giving (National Philanthropic Trust, 2018), which is an impressive percentage of total giving to nonprofit organizations. Those figures can be used as an impetus for one to create small family and community-based nonprofits. Economies worldwide are experiencing economic downturn exacerbated by the pandemic, worsening social problems (Oliveira et al., 2021). It should be noted, according to Telfor (2019), that income inequality in the United States has been at the highest level in fifty years since the Census Bureau started tracking this data. The figures released by the Federal Reserve in its Distribution Financial Accounts also pointed to a sizeable increase in wealth concentration (Telfor, 2019).

Having established that the poverty gap is widening, it is becoming increasingly apparent that governments are unable to solve the challenging and persistent social problems. Telfor (2019) contends that nonprofit organizations can fill the gap in solving these problems that the private sector and the welfare state could not address.

The historical perception of the role of nonprofit organizations, especially small nonprofits, has stymied the need for modernization and organizational restructuring to embrace technological advancements.

McNutt et al. (2018) suggest that there has been an evolution in the nonprofit sector, transitioning from the agrarian and industrial age to the technology age. As a result, the methodology deployed historically by nonprofit organizations for fundraisers and marketing is now changing (McNutt et al., 2018).

McNutt et al. (2018) assert that using technology reduces transaction costs in nonprofit organizations. In addition, marketing and fundraising in a virtual world made possible by technology can impact a global target market, even beyond your local community ( McNutt et al., 2018).

Having established the importance of technology, it is instructive that there be a change in paradigm by directors of nonprofit organizations embracing technology, which is not a costly venture. Nonprofit organizations can play a critical role in solving social problems by partnering with the private sector. This will require agile strategies, innovativeness, and creativity, embarking on a public education campaign describing an exciting future with a refashioned nonprofit.

Interestingly, private sector organizations are developing technology platforms that can make nonprofit organizations more efficient and harness more resources. In subsequent articles, I will introduce to my readers a digital platform that is technology driven that can be an asset to nonprofit organizations.

I will be writing many more articles focusing on nonprofit organizations, with ideas and scholarly researched information that can be of assistance, including information on grants.

Start thinking of strategies to form your nonprofit organization by journalling your thoughts, we can be of assistance.

Use the link below to purchase a journal to commence that incredible journey of gratitude and thoughts for your nonprofit

About the Author

Neal Waugh is a business consultant, researcher, strategic planner, and project manager. Currently, a Doctoral student in Education majoring in Leadership and Innovation, graduating in 2023 from St. Thomas University, Miami, Fl. He also has a Master of Science in Instructional Design and Technology (4.0) and a bachelor's degree in Mathematics


McNutt, J., Guo, C., Goldkind, L., & An, S. (2018). Technology in nonprofit organizations and voluntary action. Voluntaristics Review, 3(1), 1-63.

National Philanthropic Trust. (2018). Charitable Giving Statistics | NPTrust. NPTrust.

Telford, T. (2019). Income inequality in America is the highest it's been since Census Bureau started tracking it, data shows. Washington Post, 26.

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